Economist predicts horrendous crypto crash, but says traders can still cash in big first

Crypto market crash prediction: Macroeconomist and technical analyst Henrik Zeberg has issued a stark warning about the cryptocurrency market, calling it “the bubble of this era” and predicting a devastating crash in the near future, as per a report.

Analyst Warns Crypto Market Is Entering Dangerous Bubble Phase

In a post on social media platform X (formerly Twitter), Zeberg described the current market environment as “insane” and warned of a “horrendous” decline ahead, as per a Benzinga report.


According to Zeberg, the market is currently in what he calls the “extreme rally to the BlowOffTop”, a final euphoric surge before a major downturn, according to the report. He shared a chart outlining a dramatic rise in total crypto market valuation, projecting a peak of $12.95 trillion sometime between late 2025 and early 2026, as reported by Benzinga. This would be followed by a catastrophic plunge, potentially taking the market down to just $93 billion, according to the report.


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Historical Patterns Suggest Repeat of 2017 and 2021 Crashes

The chart he shared, showed historical comparisons, pointing to previous euphoric peaks in 2017 and 2021, both followed by sharp declines, as per the Benzinga report. Zeberg’s analysis also highlights a rising wedge formation, a bearish technical pattern that often signals a trend reversal, according to the report.

Final Rally May Still Offer Profitable Trading Window

Despite the bleak long-term outlook, Zeberg noted this final surge could be highly profitable for traders, as per the Benzinga report. He highlighted that, "This is where a lot of money can be made as Euphoria develops right into the top of the Business Cycle," as quoted in the report.

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Timeline for Market Peak Draws Skepticism from Traders

Not everyone agrees with the timeline. A user on X, going by the name doc_ley, responded to Zeberg’s post, questioning whether the $12.95 trillion target could be reached even by mid to late 2026, especially with the possibility of a US recession looming, according to the Benzinga report.

Crypto and Tech Stocks Seen as Part of the Same Bubble

Zeberg’s views are consistent with his previous warnings, where he suggested that Bitcoin and the Nasdaq Composite are both caught in a tech-fueled bubble, as per the report. He believes the eventual crash could bring them back to 2022 price levels, as reported by Benzinga.

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Optimism in Crypto Market Grows Despite Cautionary Warnings

Meanwhile, sentiment across the crypto market has been increasingly optimistic, with Bitcoin and Ethereum seeing sharp rallies recently, according to the report. Analyst Benjamin Cowen has described the current moment as a “pivotal phase” in the ongoing bull market, and Coin Bureau’s Nic Puckrin has predicted Bitcoin could hit $150,000 by the end of 2025, assuming a Federal Reserve rate cut materializes around September, as reported by Benzinga.

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FAQs

Is the crypto market in a bubble?
According to economist Henrik Zeberg, yes. He believes we’re currently in the final, euphoric stage of a major crypto bubble.

When could the crypto market crash happen?
Zeberg predicts the peak could arrive between late 2025 and early 2026, followed by a steep crash.